Consumers Likely to Spend More on Entertaining This Holiday Season

Deloitte’s 24th Annual Holiday Survey found that just over half of American adults (54 percent) think the economy will improve next year, and 51 percent will spend as much as last year, or a bit more, on the 2009 holiday season. Shoppers will still pare down their recipient list and the amount spent on gifts, but overall, total holiday spending will climb to $1,145 due to partying away from home and in the home, as well as non-gift clothing for family and home or holiday furnishings.

“When people pulled back last year, they realized that more important than the gift are the connections, and they are spending more time with friends and family," said Stacy Janiak, vice chairman and Deloitte’s U.S. retail leader. “And looking at clothing and home furnishings, consumers may be using holiday time to replenish items they’ve held off buying for some time."

Consumers also will keep a close eye on sales and purchase lower-priced products. “Consumers are in a very different place today," said Janiak. Last year, “the severity of the situation had not even fully impacted them yet."

With price as a major focus, stores like Wal-Mart and Target will probably benefit this holiday season. Deloitte also found that 64 percent plan to purchase gift cards, spending $35 per card, up from last year’s $28.